Hi Everyone 👋,
We’ve had quite the week here at GRIT, and so has the financial world…😳
Our weekly newsletters are designed to give you a detailed review of the week's news, plus our unique perspectives on what to do next. 📣 We want to hear from you! Fill out our feedback survey here to improve our newsletters for our free and GRIT VIP subscribers! We love your feedback. 💪
GRIT’s BIG News of the Week:
Genevieve’s Corner 👉 S&P HITS ANOTHER RECORD HIGH…
Matt’s Corner 👉 MOST IMPORTANT DIVIDEND DATES TO KNOW
Comin’ Up 👉 EARNINGS AND ECONOMIC DATA
1. Genevieve’s Corner
S&P HITS ANOTHER RECORD HIGH…
- NEW RECORD HIGHS: META, MSFT and NVIDIA
- Magnificent 7 have added a combined $3 TRILLION in market cap in 2024
-Meta added +$200 billion in market cap in a single day- the biggest one-day gain for any public company in history!
- Meta shares hit record high, announces $50B buyback & initiates a dividend
- Meta beats earnings EPS $5.33 vs $4.91 expected (+202% YoY)
- Amazon beats earnings EPS $1.00 vs $0.80 expected (+200% YoY)
- Google beats earnings EPS $1.64 vs $1.59 expected (+60% YoY)
- Apple beats earnings EPS $2.18 vs $2.11 expected (+16% YoY)
- Microsoft's market cap is now bigger than the entire value of Canada’s largest stock exchange (TSX)
- FED leaves interest rates unchanged
- Powell doesn’t think it’s likely that FED will cut rates in March
- Odds of FED cutting rates in March drop to a fresh low of 20%. In December, odds were at +90%
- The FED balance sheet is now at the lowest level since March 2021, down $1.3 trillion from its peak in April 2022. How much more QT is needed to unwind the massive QE from March 2020- April 2022? $3.5 trillion (according to Charlie Bilello)
- Former President Trump says he will fire FED Chair Jerome Powell if elected in 2024
- New York Community Bankcorp shares down -40% on loss and dividend cut (they bought Signature Bank last year)
- Regional Banks are down -7% this week ($KRE), and many regional banks are down double-digits in the last 5 days
- US economy adds 353,000 jobs in January, above expectations of 187,000
- The U.S. December jobs report was revised with 333,000 jobs added rather than the 216,000 originally reported. Breaks the 10-month trend of downward revisions in the reported jobs number
- The U.S. Unemployment Rate has been below 4% for 24 months, the longest streak since the late 1960s
- Over 82,000 layoff announcements in January 2024 (second worst January since 2009). Meanwhile, the US reported that 353,000 jobs were created in January. Something isn't adding up here (The Kobeissi Letter)
- Mentions of job cuts in earnings calls hits Pandemic Peak
- PayPal to cut 9% of workforce
- Block to cut 10% of workforce
- Deutsche Bank to cut 3,500 jobs (4% of workforce)
- Amazon terminates acquisition of iRobot & and the vacuum maker announces laying off 31% of the workforce
- Evergrande, China's largest real estate developer, must be liquidated
- Spot Bitcoin ETFs now hold +3.3% of the current BTC supply
- Google updates policy allowing Bitcoin & crypto trust products to be advertised
- FTX expects to pay all its customers in full
- Elon Musk's $55B Tesla pay package voided by a judge
-Tesla will hold a shareholder vote to transfer its state of incorporation to Texas (from Delaware)
- Oil prices in free fall, down nearly 10% in less than 5 days (even as OPEC agreed to maintain production cuts)
- Q4 GAAP EPS +16% higher than a year ago after +46% of S&P 500 companies have reported
- Peloton hits new record low, stock down 98% from record high
- Nancy Pelosi's portfolio has hit a new record high. She is up +83.45%. This year alone, her positions have made +$3MM in gains (according to Unusual Whales)
After big changes in my portfolio last week, which you can read HERE, this week was all about earnings!
Here’s my take on earnings for my positions:
Beat of top and bottom line: earnings $2.93 vs. $2.76 expected and sales $62B vs. $61.1B expected ✅
Sales were up +17.5% YoY, and earnings were up +26% YoY
The quarter's highlight was Azure (cloud) growth, stronger than expected, up 30% YoY – with a nice chunk of this due to AI.
The Productivity and Business Process unit (Office, LinkedIn, etc.), the other two segments are up 12% YoY, and More Personal Computing (Windows, Bing, Xbox) is up +18% YoY.
My Take: While acknowledging Microsoft's rich valuation, I appreciate the diversity in… Upgrade HERE to VIP to read my full GRIT Take! Get 50% off now through February 14th. 💝
Apple beats earnings EPS $2.18 vs $2.11 expected (+16% YoY) ✅
First sales growth in a year (+2% YoY)
iPhone sales up +6%
Record revenue in the Services division (Apple Music, Cloud Services, App Store, Licensing, Apple Pay, advertisement, etc.)
The installed base of active devices is at +2.2B (up +20% YoY) – a record high across all products and geographies!
Launched Vision Pro Headset this week ($100B has been spent on R&D on this product) – a lot of excitement but only a tiny likely contribution to revenue of 1%
Problematic: China revenue is down 13% YoY, and iPad sales are down 25% YoY.
My Take: The recent quarter presented a decent performance for Apple, although the… Upgrade HERE to VIP to read my full GRIT Take! Get 50% off now through February 14th. 💝
Amazon beats earnings EPS $1.00 vs $0.80 expected (+200% YoY) ✅
Q4 was a record-breaking Holiday shopping season
Sales +14% YoY
Upbeat Q1 guidance
Strong Ad-revenue (+26% YoY) – launched ads on Prime
AWS was in line (+13% YoY)
Launched a new AI shopping assistant called Rufis
The company sees potential for AI development to generate tens of billions of dollars for its cloud business
My Take: What a remarkable turnaround for Amazon! Through cost-cutting measures… Upgrade HERE to VIP to read my full GRIT Take! Get 50% off now through February 14th. 💝
Stay tuned for shifts next week!
2. Matt Allen’s Corner
MOST IMPORTANT DIVIDEND DATES TO KNOW
Hi Everyone! Today, I’m highlighting one of our newest sections in GRIT VIP, Dividends! Below, I share part of my newest article, Most Important Dividend Dates To Know.
Investing in dividend-paying stocks can be a smart way to generate regular income from your investment portfolio. However, navigating the dividend landscape requires understanding key dates significantly impacting your dividend earnings. 💵
This resource is designed to demystify the world of dividend dates, providing investors with essential knowledge about the most important dates in the dividend calendar.
📆 From the declaration to the payment date, we'll explore each milestone in detail, ensuring you can make informed decisions and maximize your dividend returns. Whether you're a seasoned investor or new to the stock market, understanding these pivotal dates is crucial in optimizing your dividend investment strategy.
The declaration date, often considered the starting point in the dividend timeline, holds paramount importance for dividend investors. This is when a company's board of directors formally announces its next dividend payment. On the declaration date, the company reveals several key pieces of information crucial for investors: the amount of the dividend per share, the record date (which we will discuss later), and the payment date.
Understanding the declaration date is essential for several reasons. Firstly, it signals the company's financial health and stability. A consistent history of dividend declarations typically reflects a company's strong earnings and a commitment to returning value to shareholders. The declared dividend indicates the company’s current profitability and outlook. 📈
For investors, the declaration date serves as a trigger for several strategic decisions. It is a cue for potential investors to buy shares to receive the upcoming dividend. For existing shareholders, it allows them to reassess their investment, especially if the dividend amount differs significantly from expectations, either positively or negatively.
The ex-dividend date is a crucial milestone for dividend investors, marking when a stock starts trading without the value of its next dividend payment. To receive the declared dividend, an investor must purchase the stock before the ex-dividend date. If you buy the stock on or after this date, the dividend will go to the seller of the stock. 💰
For example, if Company XYZ declares a dividend with an ex-dividend date of June 10th, you must own the stock by the close of the market on June 9th to be eligible for the dividend. You will not receive the upcoming dividend if you purchase the stock on June 10th or later.
The stock price typically drops approximately equal to the dividend on the ex-dividend date, reflecting the dividend's payout. This price adjustment is essential for short-term traders but less for long-term investors who focus more on the cumulative returns from regular dividends over time.
Understanding the ex-dividend date is vital to ensure you can receive dividends and comprehend the associated price movements of your investments.
Upgrade to GRIT VIP to access this full post and all our other investing resources! For a limited time, get 50% off your first annual subscription to GRIT VIP. 🚀 The discount expires on February 14th!
3. Comin’ Up
EARNINGS AND ECONOMIC DATA
Monday: McDonald’s Corporation
Tuesday: Eli Lilly, Toyota
Wednesday: Alibaba, Disney
Tuesday: Fed President’s Speak
Wednesday: U.S. trade deficit
Thursday: Initial jobless claims
Friday: CPI seasonal revisions
The way to make money is to buy when blood is running in the streets.
Interested in being featured in our GRIT Newsletters? Click below!
The author of this newsletter owns ETF’s (exchange traded funds) that may hold ownership interests in the companies discussed in this newsletter as of the published date of this newsletter.
Disclaimer: Grit is a publisher of financial information, not an investment advisor. Grit does not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient. Grit does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.
THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN. INVESTORS SHOULD OBTAIN INDIVIDUAL INVESTMENT ADVICE BASED ON THEIR OWN CIRCUMSTANCES BEFORE MAKING AN INVESTMENT DECISION
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and Grit undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.
Grit does not accept any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.